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Financial Management: Personal Investment Essay

Financial Management - Personal Investment Decision for a Public Company Financial Statistics

Rationale for Toyota

Ratio analysis

Stock price analysis

Foreign Interests

Toyota Motor Corporation, which is recognized as is one of the most exhilarating productions in the automobile business these days. The company is one of the most economical corporations all over the world and has appreciated a record setting achievement for a very long time. In the previous years, the worldwide automobile industry has been overwhelmed by soaring gas prices, and hard-hitting environmental protection laws. With that even being said, it has not been a walk in the park for Toyota, but to no gain the company has been one of the most effective establishments so far. Toyota Motor Corporation has also been one of the manufacturing leaders in creating new and innovative technologies that take advantage of the productions existing barriers. There are a lot of things that are amazing about Toyota and one of those things is the scale, and the international footprint that they presently bring about. "Toyota is one of the world's representative automobile manufacturers, manufacturing cars in 30 nations and districts and advertising automobiles in over 180 nations and regions. In economic 2013, on a combined foundation Toyota Motor Corporation delivered almost eight million cars to clienteles around the world under the Hino, Lexus, Toyota, and Daihatsu brands.

Toyota Motor Corporation had above 300,000 workers at the end of economic 2012-year" (Toyota Motor Corporation, 2014). The company faced many challenges in the recent years and has stable sustainable growth, and the company has taken this challenge seriously. The organization has plans to generate, "cars that imitate the needs of customers and the world, the organization will target sustainable growth and donate to the expansion of the automobile business" (Hordes, 2009). There is no hesitation that Toyota Motor Corporation will attain these objectives down the road, and it is expected that they will do it with record accomplishment just as they have done in the last period. (Van Nort, 2012).

History

The organization was formally recognized in the 1930s as Toyota Motor Businees, although the corporation had manufactured it initial vehicle, in 1935 and it was called the G1 truck. The GI truck was the firm's first production model, and then along came the AA model passenger car produced in 1938. (Elliot, 2014) The company dates all the way to 1916 when, "Toyoda Spinning & Weaving Co was found by Sakichi Toyoda established" (Bryce, 2007). Toyoda was the name that they used at first. Later on, they went with a different name before the business went public, for the reason that Toyota was thought to be a more fortunate name than Toyoda. (Campos, 2010). The organization had produced beyond 200,000 vehicles nationally, by 1949 and the manufacture of their second model hit the assembly lines.

Financial Statistics

The company has broken their economic records for the last previous years running. When looking at their Financial Reports, there is no reason to doubt that they will not be able to continue this streak of amazing success. The establishment has efficaciously planned their future with new car plants in several diverse nations, joint production contracts, and tie ups with numerous different corporations. Even though these arrangements are encouraging for the future, the organization investments are already in order and because they keep things continuous financially, they will return record setting statistics for the long-term future also. (Campos, 2010)

Rationale for Toyota

It would be smart to invest in Toyota because it is profitable. Toyota possibly will register a record profit of 2.4 trillion yen (around $34.7 billion) in the present economic ending May; thanks to the Japanese President financial policy, money accounted for 90% of the functioning incomes in the past three quarters. The scenario could remain mainly unaffected over the future quarters. But then again the high incomes have not discouraged Toyota Motor Corporation from its persistent cost saving advantages. It saved 215 billion yen in the past four quarters (Campos, 2010).

Toyota Motor Corporation is likewise concentrating a great deal on its extravagance brand Lexus car. This segment bids much higher limitations and sometimes ends up being the deal breaker. A year ago, Lexus saw record worldwide deals of 523,000 cars half of which came from the U.S. -- its biggest marketplace. The company has set a lofty target of rising the product 10% each year for the next 30 years, while discovering the developing markets.

The United States car industry is doing well, with an 8.7% increase in 2014. When it starts grow 2014...

Companies are scrambling to offer new models to consumers as the economy recovers and spending increases. Ford's reshaped F-150 pick-up and Mustang are expecting presentations new this year.
Toyota Motor Corporation contributions in the U.S. consist of the Lexus RC-F, moreover to 20 new or changed crosses that it suggests to roll out by the end of year 2015 (Pascal, 2011). The company struggles to make inroads into the full-size-truck marketplace, which is a range of strength for Ford and Mercury could bear some fruit in the future. It would be good to invest in Toyota because it has a strong market position in many nations all over world. The business's marketplace share for Toyota and Lexus brands is doing really well and customer s are buying them all the time. Likewise, Toyota has a marketplace share of 13.2% in North America, 14.4% marketplace share that is in Asia (eliminating China and Japan), and 5.3% marketplace share in Europe (Elliot, 2014). Furthermore, the business holds a 9% share of the Chinese marketplace and an important marketplace share in Central and South America, Africa, Oceania, and the Middle East regions (Van Nort, 2012). Such strong marketplace position permits the corporation to gain competitive advantage and likewise expand into global marketplaces. Furthermore, the organization holds an assortment of strong products in the automotive business. As a result, the corporation's strong market position gives it noteworthy competitive advantage and helps it to register advanced sales development in domestic and worldwide marketplaces.

Ratio analysis

Any prosperous business owner or stockholder is continually assessing the performance of the businesses they are involved with, associating historical statistics with its competitors in the industry, and even with effective industries from other productions. To finish a detailed examination of any corporation's efficiency, nevertheless, more needs to be looked at than the easily achievable numbers like trades, returns, and total properties. Fortunately, there are many well-verified ratios out there that make the task a tad less overwhelming (Herrold, 2012). Toyota Motor Corporation Financial ratio analysis helps recognize and compute a corporation's weaknesses and strengths, assess its financial position, and shows possible dangers. As with any other form of examination, financial ratios aren't conclusive and their results shouldn't be regarded as the only potentials. Nevertheless, when used in conjuncture with numerous other business evaluation procedures, financial ratios are priceless. By examining Toyota Motor Corporation financial ratios, along with a few other business factors, this account will give an obvious image of how the business is doing now and should do in the future.

Another reason to invest is the fact that Toyota has a strong focus on Research and Development (R&D) in order to expand its manufactured goods portfolio and making sure the functionality, excellence; safety and ecological compatibility of its products is up to par. The organization Research and Development efforts are focused at increasing new products and processes and making better the competences of current products. The business does its Research and Development operations at 14 facilities all over the world. The nation has its strong focus on Research and Development and this is because it has aided the business in integrating fresher features to its current choice of products and additionally in bringing out latest technologies in the varied areas. The company's strong focus on Research and Development allows it to uphold the technological leadership in most of its product segments. It also enables Toyota to develop innovative products, leading to strong sales

Stock price analysis

Toyota's financial statements as far as the stock price analysis are a strong statement on what is going on in the future, and confirmed after further the price analysis. It is clear that Toyota's has a present ratio of 2.08, which is to some extent below the business regular of 1.9, on the other hand because of their newest attainments of a couple of businesses in dissimilar nations, this is nothing to be really worried about. (Campos, 2010). The company's record gross revenue ratio come about being one of their solutions to making it in the car world. As talked about earlier, the automobile has been overwhelmed by the reduction in growth in amount to its past. After saying that, Toyota had another good year of sales. The organization has an inventory business percentage of 13.57, and this goes way beyond the manufacturing ordinary of 9.2. (Elliot, 2014). Currently, the companies total resources income proportion is .70 and this goes well inside the business's standards of…

Sources used in this document:
References

Bryce, H.J. (2007). "Financial and Strategic Management for Nonprofit Organizations." Englewood Cliffs: Prentice-Hall,.

Campos, F. (2010). "As funding dries up, nonprofits must work harder.." Pacific Business News,, 34(8), 34-56.

Elliot, S. (2014). Toyota Motor Corporation. The New York Times, 34(9).

Herrold, C.Y. (2012). "How to Carve a Pie." Foundation News and Commentary,. Foundation News and Commentary, 41(4), 45-67.
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